Trader Resources : Price Analysis : Fundamental Analysis Fallacies
Here are fourteen common errors encountered by traders when using fundamental analysis. These can lead to errors in forecasts.

• Viewing fundamentals in a vacuum.
• Viewing old information as new.
• One-year comparisons.
• Using fundamentals for timing.
• Lack of perspective.
• Ignoring relevant time considerations
• Assuming price cannot decline below cost of production.
• Improper inferences.
• Comparing nominal prices.
• Ignoring expectations.
• Ignoring seasonal considerations.
• Expecting price to conform to target prices in world trade agreements.
• Drawing conclusions on basis of insufficient data.
• Confusing concepts of demand and consumption.

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